Africa’s aviation sector is entering a period of expansion, but access to capital remains a major constraint for airlines seeking to grow their fleets. As demand for aircraft and engines increases, insurance could play a greater role in giving lenders confidence to finance assets in a market where many carriers have limited access to traditional funding.
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123RFAfrican fleets average around 13 years of age, and most carriers grow through quality used aircraft and engines rather than factory orders. Engine shop-visit backlogs and new-delivery delays are also pushing demand for spare engines and increasing their values, adding pressure to an already constrained financing environment.
Insurance and risk intelligence
Nolwenn Allano, chief commercial officer, EIRS, said: “Insurance exists to turn two risks, ‘what if the plane is destroyed or seized?’ and ‘what if the airline stops paying?’, into something a bank is allowed to lend against. Without it, aircraft finance is only available to a handful of top-tier carriers.”
Aurelien Paradis, who leads the AU Group/EIRS partnership, added: “An aircraft loan or engine financing is secured lending against a single, highly movable asset, made to a borrower - an airline - whose credit standing is often weak. That’s where we come in.”
Vincent Mumo Nzilani 4 Sep 2026 Boeing forecasts that passenger traffic in Africa will grow by an average of 6% annually through 2044, while the continent’s commercial aircraft fleet is expected to more than double from 715 aircraft in 2024 to 1,680 aircraft by 2044.
The financing challenge was among the issues discussed at the Aviation Africa Summit & Exhibition, held on 9–10 September in Nairobi, where more than 120 airlines and operators from around the world gathered.
Insurance as a financing tool
Against this backdrop, aviation insurance could play a broader role in supporting the sector’s long-term growth and resilience.
“The issue is not simply whether an airline can identify an aircraft it wants to acquire. The bigger question is whether the financing structure gives the lender sufficient confidence to fund it,” said Prashanth Parthasarathy, head of aviation, EIRS.
“Insurance can become an enabler of fleet growth rather than simply a protection bought after the financing decision.”
Financing challenges for African airlines
African airlines face financing challenges in a demanding operating environment, where high costs, ageing fleets, supply-chain pressures and geopolitical risks complicate expansion. IATA has noted that African airlines experience some of the world’s highest unit costs.
This places greater emphasis on financing structures that can accommodate the risks associated with aircraft and engine assets while giving lenders greater confidence.
“Africa’s aviation opportunity is clear but turning that opportunity into growth requires access to capital and confidence to invest,” said Mark Brown, CEO of Aviation Africa. “Bringing airlines, financiers, insurers and the wider aviation ecosystem together is an important part of finding practical solutions.”
As the continent prepares for a larger aviation market, the question is no longer simply whether Africa needs more aircraft, but whether its financing ecosystem is equipped to fund them.
The discussion around insurance-led financing is expected to continue as airlines, operators, financiers and insurers consider how to support aircraft and engine acquisitions and the next phase of aviation growth across Africa.
